The Secrets of the Vaping IndustryChris
I was reading recently that a company has just become the richest vaping company in the world today and it got me thinking, I have never heard of them. For most people you will feel the same way, yet we know the industry right? We know what the best products are, the best companies, the history and downfalls over the years so how could something as minor as the richest vaping company in the world pass me by? Perhaps we don’t know the industry as well as we think we do, so I wanted to dive in and take a look at that. The industry we all know and love but from a deeper perspective and perhaps we can learn a thing or two along the way, I certainly did. So join us here at Drip Hacks as we take a look at the vaping industry you may not know, from the wealth to the interesting little facts that hopefully are as new to you as they are to me.
Richest vaping company in the world
Smoore, ever heard of them? Do you buy their products or their E-liquid ? Well they have just become the worlds richest vaping company since going on the Hong Kong stock exchange taking their value to around 22 billion dollars. Just before they went public they managed to raise 900 million alone from investors before they sky rocketed their value. Yet they aren’t a name you have heard of, especially given the privately owned JUUL is an infamous name within the industry and communities alike. So why is this important that some unheard of vaping company is so rich, how did they get there?
Smoore are actually one of the oldest vaping companies in the world today. They started in 2006 by a man named Chen Zhiping who still remains part of the company to this day. They started as a manufacturer and they amount for 16% of all vaping sales worldwide, increasing their revenue for the past 3 years by at least 100%, they are a massive deal in all honesty. Based in Shenzhen like many other companies, they have a lot of focus on research and development for all their products, including ceramic coils for CBD and pods and boast over 600 R&D personnel.
So who are they exactly?
Well you may never have heard of many of their brands, none are really stand out names and probably not entirely focused on vaping itself. There is one brand however that you will have heard of….Vaporesso. Yes that is right, Vaporesso by extension have become the richest vaping company in the world by its owners, surpassing some of the names that you probably would have guessed. The ceramic technology has been applied to Vaporesso products over the years so in hindsight it really isn’t a surprise now.
So interesting to know that Vaporesso have turned into one of the most efficient vaping brands in the world today with a profit margin to show for it.
The company building their own Landmark.
So next up we have a really interesting one, there is a vaping company right now building their own landmark in China, a beacon for an entire industrial area, their name? Smok.
Yes that is right, Smok are currently building a brand new HQ in the Guangming district that is set to revolutionise both themselves and the area in ways that they could only ever dream of right now. Coming in at 38000 feet, this enormous building isn’t just designed for offices with leg room, they plan to develop technology there that will push vaping to a whole new level. Smok plan to increase research, production, speed and quality as well as supporting the growth of the surrounding area within Shenzhen. Exciting stuff indeed for the industry, especially given Smok’s position as the biggest vaping manufacturer in the world right now.
So what will this mean for us, the vapers? We could well see Smok in a position that allows them to get products quicker from research to reality, implementing new technology as they go. We could well see Smok as part of the leading companies for new vaping products, creating new ideas that has everyone else playing catch up and most importantly more products available to buy.
Set to be built by 2022, it is costing a staggering 125 million dollars to complete and building work is already underway.
The company owned by a distribution company
I think we all understand how business generally works, company run their own business, distribute internally or externally their products, sell them and make money. A simple process that allows them to prosper and grow and within the vaping world, there is no difference, except for one. The company in question is called Shenzhen SKEY technology, a big distribution company that operates in China. They are a company that boast over 300 employees with R&D, sales and both foreign and domestic E-commerce as its core motivations. They even have their own named brand of E-cigarettes except that is not who we are talking about here. The interesting thing as well is that there are loads of brands they do distribute for out of China, including Kangatech, Eleaf and even Joyetech. SKEY are therefore one of the wide spread distribution companies for E-cigarettes in China, so what company brand do they own that you may well care about?
that is right, Aspire, one of the leading E-cig companies in the world are actually owned by the distributor rather than the other way around. Aspire are not the stand alone company we consider them to be but simply a brand, part of a bigger picture. Given that SKEY distribute for other companies as well, they are not in the business of dominating the market like others try to do. It is a fascinating picture when you look from afar, the bigger picture of the industry is not just dominated by vaping companies at the top. Facts like this is what struck me as most interesting as it changes the way I personally view the industry, breaks the illusion I once had about how things run.
The company owned by a Martial Arts master.
So we have had a look at the companies in general but there is one that is owned by a very interesting individual indeed. The man is named Wang Xizhi and the company he owns is Ijoy, a brand you are all familiar with. Wang is the founder of Ijoy but that is only the beginning of the story for this wonderfully amazing man. He founded Ijoy back in 2013 and has since seen his company move from being a fresh faced company to one of the ‘old brands’ as they are referred to. Wang prefers to call Ijoy an influencer brand with a lot of focus both on research and distribution, much like every other one. Mr Xizhi is one of, if not the youngest owner of a vaping company in China, certainly between the big hitters that you know about. This isn’t why he is interesting though, he is also a martial arts master.
When Wang was only 8 years old, after he became infatuated by seeing Jet Li up on the big screen, he joined a martial arts academy 5 kilometres from his house and started learning traditional martial arts. This love for the discipline grew as he grew older when in high school he joined the martial arts team and started his professional training. In college as well he was captain of the martial arts team, he spent the best part of his years engulfed in training. To this day Wang still trains every single day in Martial Arts, to the point he is referred to as a ‘Kung Fu Idiot’. A lovely name for someone so dedicated to his passion right? You could say this shaped him into the man he became, still idolising Jet Li as both an arts inspiration and in spirit in everyday life. This dedication is what made Ijoy the company it is today.
It gets better though.
In 2019 Mr Xizhi stepped down as CEO of Ijoy and became chairman of the board instead to free up a little bit more of his spare time to dedicate to his passion. This was a man looking up to his idol every single day and in the same year he made his dream come true. He starred in the action movie Warfare Genie, finally realising his life long ambition to emulate his hero. He joined the Taiji Clan within the Tai-Chi discipline, which was set up by none other than….Jet Li. He joined his hero’s discipline and began to be guided by him in his passion. From a young buy he idolised Jet Li and finally not only does he get to emulate him on the big screen but he was along side him in training, it doesn’t get better than that.
Wang Xizhi is a truly remarkable man, during filming for Warfare genie he insisted on shooting every single day and only getting 4 hours of sleep a day, fully committed to the role. In between shooting for the movie he was also running Ijoy still, continually working whether it was for business or passion. He is an amazing individual and the most incredible thing is, he has become an inspiration for many young Chinese children, just as Jet Li was an idol for him.
The company struggling
We will round up these interesting little facts with another little known story about one vaping company who isn’t going from strength to strength but instead is looking quite precariously at the future. The company we are talking about here, is Sigelei. Sigelei is one of those household names when it comes to the vaping industry, they were there at the start and quite early on they were THE company alongside Eleaf for mods. They were high quality, reliable and many vapers loved them, their 100w mod still remains quite popular, if a little difficult to come by. We have seen companies go from strength to strength yet Sigelei seem to have been left behind.
It starts in recent times, either 2018 or 2019 when the company decided to relocate out of Shenzhen and into Guangdong specifically. That would normally not make that much of a difference but in the E-cigarette industry there it was major. Every other company are based there with any global brand, except now for Sigelei. They decided to uplift and move their operations out of the vape street as its commonly known, which was seen as quite a bizarre move. Then they released their financial records and it started to make sense. Now where Smoore have had 100% growth for the past 3 years, Sigelei released slightly different records. They announced they had LOST 23.1281 million Yuan or in market talk, they have seen a loss of 52.25% year on year decrease. That for a vaping company is a significant loss, especially when you consider Sigelei run 2 separate brands in their name and Snow wolf which was acquired by them a few years back.
They lay the blame to overseas tariffs, America to name just one but as their operating costs decreased by 42.68%, so did their operating income by 52.25%. Sigelei seem to be losing money, scary to think at one point they were one of the kings of the vaping industry. Whatever the future may hold for Sigelei, right now it does not look good given the figures they have released when you compare them to other companies operating under the same conditions. Has their losses come solely from shipping issues or have vapers stopped buying their products due to a lower quality control? That I will leave to the reviewers out there to answer, and you the community.
It is amazing when you look at some of these interesting stories that how amazing the vaping industry is under the surface. Who would have thought that a company is out there with such an inspirational owner or that the biggest name in vaping is planning on making more than just a legacy in the market. These were things I had no idea about before researching and I am sure there is plenty more out there, ideas for a follow up maybe? One thing is for sure, there is so much more to our industry than just E-cigarettes and at least in China, vaping could well be leaving a lasting legacy far beyond simply offering us an alternative to smoking.